How long after you stop Paying Mortgage do they Put your House in Foreclosure?

October 7th, 2009 | Tags: Foreclosure

under foreclosure

There are different time periods from various lenders before the process of foreclosure actually starts.

If you have taken it from a private lender or a bank, (non government related), and have failed to make mortgage payments for at least 3 months in a row, will the lender send a notice of intent to accelerate.

If you have taken a mortgage loan from Freddie Mac or Fannie Mae, it will usually be 4-6 months of non-payment of mortgage payments that will initiate a notice of intent to accelerate.

If you have applied for a mortgage loan through a VA lender, then you will get a notice of intent to accelerate or similar after 6-8 months.

After you receive the notice of intent to accelerate and contact the lender within 30 days, then there may be some kind of reworking that they might do to your loan account. However if you fail to contact them within the 30 days after you receive the letter, your mortgage loan account will be accelerated and the debt will become due. After a few days, you may receive a letter stating that the foreclosure proceedings have begun.

Even if there is a moratorium that has been enforced by the federal or the state laws, you will still get a notice of foreclosure. A moratorium simply means that during that period they won’t foreclose unless the laws or the policies of the country change. After the moratorium period is over, the lender will move in quickly to foreclose the property.

During the foreclosure period, you can also sell the property back to the lender in what is known as a short sale, which will meet your mortgage loan obligations. This will stop the foreclosure procedure, however you will still get a bad credit mark on your credit report.

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